Your Roofing Estimate is Higher Than My Insurance Claim

If you’ve found damage to your roof after a significant storm, odds are your first call is to your insurance to file a claim. They send an adjuster, analyze the destruction, then give you a price for how much they’re prepared to send you for repairs. Next, you might call a local roofer who gives you an estimate for the repairs. Now, why is it that the roofer's estimate is higher than your insurance claim?

Two Reasons Why Your Insurance Check is Too Low to Cover the Estimate

If you’ve ever experienced this, there are a few common reasons that the numbers wouldn’t match up.

Reason #1: The Scope of Work 

One reason why your roofing estimate is higher than the insurance claim has to do with the scope of work for the job. Your insurance claim document could be missing several items that the adjuster may not have accounted for but you still need in order to properly repair your roof. 

At Homestead Roofing Company, we're used to working with insurance companies and, unfortunately, we've found that this isn't all that uncommon.

Reason #2: The Estimating Software 

Another reason your insurance claim amount could differ from your roofing contractor's quote is the software your insurance company uses to generate their estimates. 

Around 85 to 90% of insurance companies use a program called Xactimate. Xactimate surveys contractors all over the country to find out how much they're paying for materials and labor. They contact contractors for all types of jobs, including roofing, windows, siding, painting, and interior repairs. 

The program then takes the median price for the materials and labor needed and that's how they derive the pricing for their claims. Neither the insurance company nor the contractor is setting the price; the Xactimate software is. One major issue with the program is that it uses the median price instead of the average. But there are some other problems beyond that. 

1. Only an experienced roofing contractor knows what it will truly take to replace or repair your roof properly. An adjuster doesn't have the expertise that a contractor does. So the scope of work in your contractor's estimate could consist of more items because they know how to fix your roof correctly. 
2. Your roofing contractor's pricing might be higher because he's basing it on real-time costs. The cost of roofing materials and labor often fluctuates throughout the year. Price increases could be due to things like oil prices (oil is the main ingredient in asphalt shingles), supplier markups, and material shortages. 

Contractors use the most accurate pricing on their estimates. Xactimate, on the other hand, is delayed in accounting for price changes. The program is behind on their pricing because the cost of labor and material has increased. It can take several weeks to a few months to catch up to the modified pricing. 

Choose a Roofer With Insurance Expertise

No matter how severe your roof damage is after a storm, it's important to work with a contractor who is reputable, trusted, and has a lot of experience working with insurance claims. 

At Homestead Roofing, we're no strangers to helping homeowners navigate the difficult, sometimes confusing claims process. 

For more information, check out our learning center. You can also always contact us with any further questions or call our office at 719-294-0723.